Free Trade Agreement

The India -Sri Lanka Free Trade Agreement was signed on December 28, 1998 with an overall objective to promote trade and economic relations between the two countries and promote FDI. It entered into force from March 1, 2000. The focal points are the respective Ministries of Commerce and Industry.

Customs circular on removal of Port Entry restrictions on Tea exports under TRQ by India is available here.

(b) Textiles, where there is a 25% tariff reduction for 528 Textile items;

India’s concession list of Textile items with 25% MOP is available here.

(c) Garments where the 50% margin of preference on 8 million pieces over 233 tariff lines has been further liberalized through an MoU on October 5, 2007. The Government of India has issued a Custom Notification No. 52/2008 dated 22nd April 2008 giving immediate effect to the MoU. As a result, India has reduced duty to zero and removed restrictions on entry ports and sourcing of fabrics from India for 3 million pieces of apparel products from Sri Lanka. India has also removed port restrictions on the balance 5 million pieces of apparel products.

India’s list on which Tariff Rate Quota (TRQ) has been granted (tea and garments) is available here.

An important element of the FTA is the Rules of Origin (ROO) criteria to ensure minimum local content. Under the FTA this is reduced to a level of only 35% of FOB value as against 40% under SAPTA. The Rules of Origin can be accessed here.